NextFin news, On Thursday, October 2, 2025, Gabriela Santos, JPMorgan Asset Management's chief market strategist for the Americas, told CNBC's 'Squawk Box' that the Federal Reserve possesses enough economic data points to justify a 25 basis point cut in interest rates this October, even amid the current U.S. government shutdown.
Santos highlighted that despite the partial government shutdown limiting some data releases, the Fed's decision-making will rely on a broad range of available economic indicators. She emphasized the resilience of the consumer sector and the labor market as key factors supporting the Fed's inflation fight and monetary policy adjustments.
The government shutdown, which began earlier this week, has raised concerns about the availability of timely economic data. However, Santos noted that the Federal Reserve can still assess sufficient information from private sector data and other sources to guide its policy decisions.
JPMorgan's strategist also discussed the broader market trends, noting that investors are closely watching the Fed's moves amid ongoing inflation pressures and economic uncertainties. The anticipated rate cut aims to balance supporting economic growth while continuing to address inflation.
The Federal Reserve's upcoming policy meeting in October is widely expected to consider this 25 basis point reduction, reflecting a cautious approach to monetary easing in the current economic environment.
This statement from JPMorgan comes as the U.S. government shutdown enters its early days, with no immediate resolution in sight, raising questions about the impact on economic data flow and market stability.
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